General Medical And Surgical Hospital Industry

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This analysis serves to explore the General Medical and Surgical Hospital industry, which is comprised of companies that provide medical, diagnostic and treatment services to people on an inpatient and outpatient basis at specialized medical, surgery, emergency and other healthcare facilities. Hospitals maintain inpatient beds and usually provide other services such as outpatient services, operating room services and pharmacy services (First Research, 2014). These hospitals offer a variety of services which require varying time in the facilities. “Major services include inpatient hospital care (about 60 percent of industry revenue) and outpatient services that typically don 't require an overnight stay (about …show more content…

With current revenues nearing 1 Trillion dollars, the industry is almost certain to grow to its highest level ever. Recent estimates for annual growth for the coming five years are just under 4percent.


This section serves to discuss and analyze the macro-environment and drivers for change including a discussion of the political, social and technological environment. Each section will discuss the environment as a whole and what specific items will be drivers for change in the coming years of in the United States hospital industry.

The political environment surrounding hospitals is far and away the most important key external driver to the industry. Government funded programs, such as Medicare, Medicaid and the Affordable Care Act, have huge effects on the demand to the industry as they determine how many Americans will be insured. The Affordable Care Act is changing the way hospitals function. “The law calls for an emphasis on patient outcomes and overall patient care, which will change how hospitals are reimbursed for services. Under the new law, hospitals with high readmission rates will be reimbursed by Medicare at a lower rate” (First Research, 2014). In essence, hospitals are being punished by not diagnosing and treating a patient correctly the first time. As a result, hospitals must find highly skilled labor and cutting edge machinery to prevent mistakes which in turn

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